Source: John Sabini out as Racing and Wagering Board chairman

SARATOGA SPRINGS -- New York State Racing and Wagering Board Chairman John Sabini has informed employees that Friday will be his last day on the job, sources say.

As board chairman, Sabini is the state's chief racing regulator.

Sabini called all board employees together on Monday to inform them about his impending departure, according to a board employee who requested anonymity.

Gov. Andrew Cuomo, who will deliver his State of the State Address today, has already called for a merger of the racing board and state Lottery Division to form a new state Gaming Commission, a move scheduled to take effect Feb. 1.

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The Racing and Wagering Board's next meeting is scheduled one day beforehand, at 1 p.m. Thursday, Jan. 31.

It's believed Sabini won't be named to the commission, prompting his resignation to begin pursuing other opportunities, sources say. Sabini's 2010 salary was $124,476, according to the website findthedata.org.

Sabini could not immediately be reached for comment. Racing board and governor's office spokespersons did not respond to calls for comment.

Sabini, a former Democratic state senator from Long Island, has chaired the three-member board since 2008, when he was appointed by former Gov. David Paterson.

The board is headquartered at the state Lottery building in downtown Schenectady.

Sabini holds leadership posts in several racing-related entities.

He also chairs the New York State Breeding & Development Fund, based in Saratoga Springs, which is responsible for distributing thoroughbred breeder awards. That agency, too, will be merged into the Gaming Commission and move to the Lottery building in Schenectady from its present headquarters at Saratoga Spa State Park.

Breeding fund board member Joseph McMahon of Saratoga Springs said he wasn't surprised at Sabini's announcement.

"He's been telling everybody that he would be gone on Feb. 1," McMahon said.

In addition, Sabini chairs harness racing's Sire Stakes program and co-chaired a state Task Force on Retired Racehorses. By leaving the racing board, he will no longer chair the thoroughbred fund or Sire Stakes program.

Last April, Sabini was elected chairman of the Association of Racing Commissioners International. It's uncertain if his status with that group will change.

The racing board's other two members are Daniel Hogan of Slingerlands and Charles Diamond of Watervliet. It's not immediately known if they will be part of the new Gaming Commission, either.

However, Sabini apparently isn't one of Cuomo's choices, another indication of the governor's willingness to make changes whenever and wherever he feels they are needed.

Last year, Cuomo was angered by several issues surrounding New York Racing Association, including the high number of equine deaths at Aqueduct Racetrack and NYRA's unwillingness to provide state officials with information in a timely manner.

Cuomo's frustrations boiled over following a wagering scandal, discovered last spring, which cost the betting public more than $8 million and led to the firing of two top NYRA officials -- President and CEO Charles Hayward and Senior Vice President and General Counsel Patrick Kehoe.

Cuomo later overhauled the NYRA board with 12 state appointees, including eight of his own, which made the board publicly controlled for the first time in the firm's history, dating back to 1955.

NYRA's new board is scheduled to meet again Friday, Jan. 25, in Manhattan.